Thursday , February 9 2023

For a payment card – tax benefits? – Y-News


Money is often and completely incorrectly described as an outdated social error, according to representatives of associations belonging to the Alliance of Consumer Organizations in Lithuania. This is because the public discourse on funding topics is made up of well paid bank analysts and public information dissemination centers run by the banks themselves. The bank prosecutor's office, which relies on a unilateral report on an apparently rapid ending at the "dead end of life", is known by consumers as "buka" and suggests resisting the facts.

The popular stereotype of banks about the lack of signs of our society, changing the network with new forms of regulation is also not critical, simply comparing Lithuania with other EU countries.

2018. date. Source: European Central Bank

"Figures show that Lithuanians use bank cards on average as much as residents in other European countries, for example, even more than Germans or Italians, and a little less than Irish or Spanish. […] So, we are not the backbone, as we try to "stick" to our head. It seems that banks are restricting citizens' access to cash closures for bank departments, which no longer offer cash services, increases in cash services – leading to very selfish incentives to take advantage of people's mediation to pay for products or services, "says the Secretary General of the Banking Banking Association of Lithuania Director Rūtenis Paukštė.

Representatives of consumer organizations highlight their own beliefs about the benefits of cashless settlements. However, in their view, there is no need for measures to promote the consumer based on the principle of honey. According to Kęstutis Kupšis, Executive Director of the Association for Fair Trade, the introduction of new electronic purchasing and selling systems and cross-checks, which are being implemented by the Lithuanian enterprises in the State Tax Inspectorate, should be relatively simple and introduces a further constant, the buyer and the seller when the end-user transaction takes place through the cash register.

"Suppose a trader saves one percent of VAT to be paid if it is not paid in cash and the buyer receives a reduction in income tax on payment. If we talk about tax deductibility for households, why do not we set a more objective high – to reduce the net and size of the underground economy by tax incentives for the use of electronic money? The rescued percentage point of VAT is already a major incentive for the trader to invest in the maintenance of the payment terminal.

The State, by creating such incentives, initially risks not collecting a small portion of the tax, but is offset by the significant increase in revenue subsequently, when consumers are aware of the benefits of electronic settlements. By subtracting cash agreements, the underground economy drops as more and more transactions are recorded and tracked. "However, this should not be forbidden by, for example, reducing the use of net use by imposing a cash ceiling on transactions and similar measures. Promotional measures that provide users with tangible benefits of nonprofit use are Better repeated prosecution by bankers does not work, the Lithuanians are clinging to the head that the net is gone and we have to go the Swedish way (while postponing the fact that Sweden is probably the only country in the world considering a possibility "The people feel banks' counterfeit knowledge, they still appreciate the net benefits and even remain deliberately affiliated with the net, in order to keep as little as possible the banks," notes the head of the For Banking Fair association.

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